PROPOSED ONTARIO TAX MAY KILL CRAFT DISTILLERY BUSINESS

Ontario’s craft distillers are bracing for a fight with the Wynne government over a proposed 61.5% cent tax on provincial spirits. The provision would apply to all store sales and there are fears it would effectively kill the industry.

Spokesman Chevy Patterson is the vice president of operations at Dixon Spirits in Guelph. He says the provincial tax man already gets half the distillery store profits and if the tax becomes law, their choices are to sell more product outside of Ontario, or go out of business.

Provincial Finance Minister Charles Sousa counters that in a statement. Sousa argues the proposed tax would actually put more money into the pockets of small distillers. He says the craft distillers will get more money under his scheme than they would under the current LCBO model.

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